The document discusses strategic intent and the balanced scorecard approach to strategic management. It defines strategic intent as the purpose and direction an organization aims to achieve. Key elements of strategic intent include vision, mission, goals, and objectives. These elements form a hierarchy with the vision at the top as the long-term goal, followed by the mission which articulates how the vision will be achieved, then specific goals and objectives with metrics to evaluate performance. The balanced scorecard framework translates strategic intent into objectives and measures across financial, customer, internal process, and learning/growth perspectives.

1. Strategic Intent
Presented by
Jaswinder Singh

2. Strategic Management
• Strategy Management is defined as a dynamic process of
formulation, implementation, evaluation, and control
of strategies to realise the organization’s strategic
intent

3. Strategic Intent
• It refers to purpose for what organization
strives for. Organization must define “what
they want to do” , “why they want to do”.
• This “why they want to do” underlines the end
result and in management terms it is known
as strategic intent
• Strategic Intent has a hierarchy: Vision,
Mission, Goals and Objectives

4. Hierarchy of Strategic Intent

5. VISION• Burt Nanus a well known expert of organizational vision has
defined vision as “ a realistic, credible and attractive future
for an organization”.
• Realistic: Vision must be based on reality to be meaningful
for an organization; It should not be a merely day dreaming
but a dream to be converted into reality
• Credible: Vision must be believable to be relevant to the
members of organization. One of the purpose of vision is to
aspire those in org. to achieve a level of excellence
• Attractive: Vision must be attractive as to inspire and
motivate the org. members. People must want to be a part
of future of org.
• Future: Vision is always for future
Kotter (1990) defines it as a "description of something(an
organization, a corporate culture, a business, a technology, an
activity) in the future"

6. Features of good vision
• It should be idealistic( should be realistic)
• Good vision clarifies the direction
• Good vision encourages the org. members
commitment from them
• Good vision reflects uniqueness of org. ,its
distinct competence, what it stands for and what
it is able to achieve.
• Good vision is consistent with org values and
culture
• Good vision is easily understood by those who
are responsible to convert it into reality

7. Examples of vision
• Infosys- To be globally respected company that
provides best of breed software solutions by
best-in-class people
• Tata tea- to be India’s foremost tea based
beverage company

8. Developing a vision
Its like converting dream into reality
Conducting vision audit-To asses current direction
Targeting the vision- What are the boundaries and
constraints to the vision? What vision must
accomplish?
Setting vision context: how org. should look in
future
Developing future scenarios
Generating the alternative visions
Choosing the final vision

9. Mission
• Is defined a fundamental unique purpose that
sets a business apart from other firms of its type
and identifies its scope of its operations in
product and market terms. Its is a statement
which defines the role that org. plays in society
Difference b/w Vision and mission
• Vision is forward looking and mission states what
org. is and why it exists
• Vision emphasis on long term concept with very
high level of achievement and mission deals with
products , services offers, way these are offered.

10. Mission Statement
• Is the description of org. mission. Explicit mission
statement is desirable as it serves the purpose of
communicating to the organization’s members
about the corporate philosophy , character and
image of the org. which govern their behavior in
org.
Following pints should be kept in mind while
formulating mission statement:
• It should be feasible
• It should be precise
• It should be clear

11. • It should be motivating
• It should be distinctive
• It should include major components
of strategy
• It should indicate how objectives are to be
accomplished

12. Examples of mission statement
• Infosys: To achieve our objectives in a
environment of fairness, honesty and courtesy
towards our clients, employess, vendors and
society at large
• Tata tea:
o Achieve market and thought leadership for
branded tea in india
o Drive long term profitable growth
o Co create enhanced value for stakeholders
o Make tata tea a great place for work

13. Business Definition
• Is clear cut statement of the business or a set of
business, the org. engages in presently or wishes
to pursue in future. Then it prescribes the area in
which the org will play compete
• Business can defined along three dimensions–
product, customer and technology.
• Business must reflect two features : Focus and
Differentiation
• Example: HUL business definition: “To meet
everyday needs of people everywhere with
branded products”

14. Goals and Objectives
• Goals denote what an organization hopes to
accomplish in a future period of time. They represent
the future state or outcome of effort put in now.
• Objectives are the ends that state specifically how the
goals shall be achieved. They are concrete and specific
in contrast to goals that are generalized
• Goals and objectives are the end results which an
organization strives for
• There may be different ways in expressing end result
like market leadership , a certain percentage increase
in sales in particular year

15. Features of goals and objectives
• SMART DUMB
• S- Specific D-Doable(within powers)
• M- Measurable U-Understandable
• A- Attainable M-Manageable
• R- Relevant B-Beneficial
• T- Time bound

16. Role of objectives
• Directions for decision making
• Objectives work as motivating force
• Performance standards
• Defines relationship with environment

17. Characteristics of objectives
• Objectives should be understandable
• Objectives should be concrete and specific
• Objectives should be related to a timeframe
• Objectives should be measurable and
controllable
• Objectives should be challenging
• Different objectives should correlate with each
other
• Objectives should be set within constraints

18. Issues in objective setting
• Specificity
• Multiplicity
• Periodicity
• Verifiability
• Quality

19. Balanced Scorecard
The Balanced Scorecard is a strategic planning and
management system used to align business activities
to the vision and strategy of the organization by
monitoring performance against strategic goals.

20. Balanced Scorecard Concept
• Was first published in 1992 by Kaplan and Norton, a
book followed in 1996.
• Traditional performance measurement that only
focus on external accounting data are obsolete.
• The approach is to provide 'balance' to the financial
perspective.

21. Why Use a Balanced Scorecard?
• Improve organizational performance by measuring
what matters
• Increase focus on strategy and results
• Align organization strategy with workers on a day-to-
day basis
• Focus on the drivers key to future performance
• Improve communication of the organization’s Vision
and Strategy
• Prioritize Projects / Initiatives

22. Original Business Perspectives
Adapted from The Balanced Scorecard by Kaplan & Norton
 The Balanced
Scorecard model
suggests that we
view the
organization from 4
perspectives.
 Then Develop
metrics, collect data
and analyze it
relative to each of
these perspectives

23. Business Perspectives Questions
• Financial
– What must we do to create sustainable economic value?
• Internal Business Process
– To satisfy our stakeholders, what must be our levels of
productivity, efficiency, and quality?
• Learning and Growth
– How does our employee performance management system,
including feedback to employees, support high performance?
• Customer
– What do our customers require from us and how are we doing
according to those requirements?

24. Balanced Scorecard Measurements

25. Key Implementation Success Factors
• Obtaining executive sponsorship and commitment
• Involving a broad base of leaders, managers and
employees in scorecard development
• Choose the right Scorecard Champion
• Beginning interactive (two-way) communication first
• Viewing the scorecard as a long-term journey rather
than a short-term project
• Getting outside help if needed

26. Department Level Scorecard Example

27. Scorecard Criticisms
• Lack of a well Defined Strategy
– The balanced scorecard relies on a well defined strategy and
understanding of linkages between strategic objections and metrics.
Without this foundation the implementation could fail.
• Too much focus on the lagging measures
– Focusing on only the lagging measures may cause a lack of priority or
opportunity for the leading measures.
• Use of Generic Metrics
– Don’t just copy metrics from another firm. Identify the measures that
apply to your strategy and competitive position .
• Self-serving managers
– Managers whose goal is to achieve a desired result in order to obtain a
bonus or other self reward.

28. Balanced Scorecard Benefits
• Helps align key performance measures with strategy at all levels of an
organization
• The methodology facilitates communication and understanding of
business goals and strategies at all levels of an organization
• Strategic initiatives that follow "best practices" methodologies that
cascade through the entire organization
• Transforms an organization’s mission statement and strategic plan from a
passive document into the "marching orders" for the organization on a
daily basis.
• It enables executives to truly execute their strategies by identifying what
should be done and measured.
To date, some form of a Balanced Scorecard is used by nearly 60% of Fortune
500 companies